The lease survives the sale

A lease is an interest in the property, not a personal arrangement with the landlord. When the deed transfers, the buyer steps into the landlord's position and the tenant keeps the same rent, term, and rights. The closing includes an assignment of leases, a transfer of deposits and prepaid rent, and prorated rent for the month.

Security deposits are transferred, not refunded. The new owner becomes liable to the tenant for them. Do not return deposits at closing or treat them as sale proceeds — that creates a claim against you after you no longer own the property.

Why the economics changed

Insurance premiums have risen sharply, particularly in Florida and along the Gulf Coast. Property tax assessments have followed rising values, and a non-owner-occupied rental usually does not get the homestead caps that protect an owner-occupier. Then there is the make-ready: flooring, paint, appliances, an HVAC system at the end of its life, all spent before a single month's rent comes in.

For an owner who wanted passive income and got a second job, the decision often has nothing to do with the market. It is about not spending the next $20,000.

What we buy

  • Occupied rentals, mid-lease or month-to-month
  • Rentals with tenants in arrears or an eviction already filed
  • Vacant rentals between tenants, stripped or mid-turnover
  • Subsidised tenancies, including housing-authority programmes
  • Single-family rentals, duplexes, and small multifamily buildings
  • Portfolios closed in a single transaction
  • Properties managed by a company, or self-managed from out of state

Documents worth gathering now

The lease and every amendment, a current rent ledger, deposit records and where the funds are held, any notices given, any filed case, and subsidy paperwork if the tenancy is assisted. Having those ready is the difference between a two-week closing and a six-week one.

One tax point: selling a rental triggers depreciation recapture as well as capital gains at the federal level, which surprises owners who only budgeted for gains. If a 1031 exchange is in play, it has to be set up before closing, not after. That is a CPA conversation and worth having early.

Frequently asked questions

Can I sell a rental with tenants in place?

Yes. The lease and the security deposit transfer to the buyer at closing and the tenancy continues.

Do I need to evict first?

No. Selling does not require ending the tenancy.

Who is responsible for the security deposit after closing?

The new owner. The deposit is transferred at closing.

Can I sell several rentals in one closing?

Yes, and it is usually simpler for both sides.

Do I have to do a make-ready?

No. We buy mid-turnover, stripped, or fully occupied.